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6 Top Payment Solutions to Help Grow Your Small Business

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6 Top Payment Solutions to Help Grow Your Small Business

 

How your small business handles payments was once a basic decision: cash, checks, credit cards via a merchant account, and you were done. But while the digital age has given customers a lot more flexibility in how they can pay, it’s made the process significantly more complicated for merchants, especially small shops or online retailers.

Most merchants already know about traditional credit card processing services that now also power a long list of online payment and e-commerce solutions. But over the last few years, that list has gotten even longer because of the rapidly multiplying number of mobile payment methods that can use proprietary processing devices, smart cards, and touch-less terminals.

All these options are great for consumers, but this payment evolution also means that small businesses now have to wade through a lengthy requirements gathering and cost-benefit process for each new payment method with which they engage. Those requirements vary depending on both the payment method as well as your particular business situation, so it can be a heavy lift. In the past, setting up payments solutions was a far more straightforward process. You had to have a landline, rent a credit card machine, and then calculate processing fees and other charges into the cost of doing business. While mobile payment providers are working to make the implementation process easier for small businesses, the sheer number of choices can be daunting.

Additionally, now that most point of sale (POS) services have gone digital as well, even choosing your store’s cash register can be tricky. Especially so if, as with so many merchants these days, your brick-and-mortar store is backed up by an online outlet, since the two payment systems will need to communicate. That’s so they can share not only revenue data, but also inventory and customer information.

Those are just the options available right now. According to a study by research firm Markets and Markets, payment processing solutions are expected to grow to $120 billion by 2025. This includes debit cards, credit cards, electronic wallets, ACH payments, and other methods, some of which have yet to be released. The report cites a number of economic drivers affecting this shift, but at the end of the day, the primary driver seems to be changing consumer needs.

“Today’s consumer is all about convenience,” states Frank Pagano, Executive Sales Director of VizyPay, a small business credit card processing provider. He maintains that offering multiple payment options will be vital for every small business, particularly mobile payment systems, and especially those that carry big brand names, like Apple Pay. That conclusion seems supported by current market data as compiled by market research firm, Statista:

Statista Research indicating growth of Apple Pay users between 2016-2020

“Smartphones are continuing to become more universal,” continues Pagano, “and this helps eliminate the need to carry around cash or credit cards.” That kind of convenience will be very attractive to your customers, and convenience is the focus of most emerging payment methods. That means very few, if any, small businesses can afford not to plan for these new trends.

So What’s The Future of Payment Tech?

“The future of payments looks less about consolidation than it does competitive cooperation,” said C. Eric Smith, CEO and co-founder of AppBrilliance, a payment technology company based in Austin, TX. He points out that the rate of innovation in this space has accelerated dramatically, which means you’re facing added complexity, but also opportunity.

“Alternative payment rails can provide significant cost savings to businesses in a retail economy that has transitioned in a blink to cashless operations,” explains Smith. He points out that payment processing costs for both retail POS card-present transactions and card-not-present payments through mobile apps and e-commerce systems have skyrocketed. That’s driven small businesses to look favorably on any payment innovations that can promise to reduce those costs.

Card-not-present transactions usually carry higher processing costs than card-present transactions. Additionally, merchants are on the hook for fraud if they’re unable to accept a customer’s EMV (chip-enabled) credit or debit card for in-person transactions. “That means you need to make sure your payment processing is compliant with all of the appropriate regulations,” said Ted Rossman, credit card analyst at Bankrate.com, a financial services provider.

“Another big trend has been ‘buy now, pay later’ with the emergence of companies like Affirm, Afterpay, and Klarna. PayPal has a couple of ‘buy now, pay later’ options in PayPal Credit and PayPal Pay in 4,” continues Rossman. According to his research, this is likely because the data shows that customers spend more when using these kinds of services.

One recent and significant influence on payment trends is, of course, COVID-19. “Because of the pandemic, contactless payments have become essential,” says VizyPay’s Pagano. This isn’t only because businesses need to react to worried customers, but in many places it’s actually mandatory due to safety regulations imposed by either state or municipal governments around measures like contact tracing. If you’re operating in one of these locales, you’ll need to meet those requirements if you want to keep your doors open for at least the next year. That’s caused a big increase in the demand for contactless payments systems, and once customers get a taste for its convenience, it’s unlikely those systems will go away even after the COVID-19 threat fades.

Buying Your Payment Solution

Point-of-Sale Terminal Used in Small Business Setting

While banks try to respond to the needs of small business owners in their aim to serve as intermediaries for payment solutions, you’re likely going to have to figure out what works best for your business yourself. The big challenges here for small businesses are twofold: First, you have to determine which combination of payment solutions will work best for your business today; and, second, you need to make sure that whatever choices you make now don’t lock you into a single set of services so you can’t react quickly to new payment opportunities as they emerge.

When it comes to figuring out what’s best for you right now, a big consideration needs to be cost. Emily Chung, owner and operator of AutoNiche, an auto repair shop in Ontario, Canada, says this was her biggest challenge overall. “These are costs that the end user doesn’t see,” she says. “We’re not allowed to refuse premium cards, nor can we add a surcharge to accept credit cards.” That means her business faces mandatory costs imposed by credit card processors whether it wants to or not.

And those costs can be significant to the business while being invisible to the customer. Chung says her business spends less than $3 per month to process all its debit card transactions, but it spends hundreds of dollars per month to process credit card payments.

“When evaluating payment solutions, businesses must consider the total cost of ownership. For example, sometimes a ‘free’ payment terminal comes with higher processing costs or an expensive long-term contract,” said Bankrate.com’s Rossman.

“Leasing a terminal can also be more expensive than buying one outright,” he continues. “You should put together an apples-to-apples comparison of the per-transaction processing cost as well as the cost of any applicable hardware, along with any other fees or subscriptions. Then evaluate whether you’re making a long- or short-term commitment.”

You’ll probably also be strongly guided by the way you do business. For example, stores that operate online only won’t need a processing terminal, while stores that operate both online and in a physical location will need a service that supports both environments. Customer interaction is another good indicator, especially in physical stores where payment systems that support mobile terminals attached to tablets or smartphones are becoming more popular because they let sales staff interact more freely with customers.

“Many businesses may be tempted to search for a specific payment solution right off the bat. However, it’s important to step back and look at what you’re solving for,” explains Pranad Sood, VP Small Business for GoCardless, which helps small businesses get paid through direct debit. He advises that you should identify how your business operates. That means factoring in where your customers are located and how they like to interact with your operation. Then decide how you need to bill and collect payments. Once that’s determined, you can start searching for solutions that match. Below, we’ve listed six popular business payment solutions that can help.

Shopify Image

Shopify is a well-known name among e-commerce offerings. The service provides an all-in-one platform for those looking to operate an online store, including catalog and shopping card services with an integrated payment processing solution, Shopify Payments. Users of Shopify’s webstore service or customers of its separate point of sale product, Shopify POS, will use the Shopify Payments engine on the back-end.

If you’re running a webstore built on Shopify, then this service is a no-brainer. For one thing, it’s very easy to setup requiring only a few clicks in the Shopify account interface to activate. Shopify also won’t charge a commission on transactions and its credit card processing rate of 2.9% + $0.30 per transaction, while slightly high, is certainly competitive. There is a also a per-month service charge, and this rises as your transaction needs go up, though your transaction rates will decrease. That’ll take some math, but the company is refreshingly transparent about these fees so you can factor them into your total cost of doing business before committing.

If you’re not on the Shopify platform, however, the service requires a closer look. The Shopify POS is a mobile-capable cash register app for which you can rent several kinds of processing hardware if you’re not happy with the single chip-and-swipe reader the service throws in for free. Once you’re set on hardware, the platform will be able to handle over 100 different kinds of payment methods, including credit cards, mobile payment services, and electronic wallet applications. But without being a Shopify platform customer, you’ll need to go through a significantly lengthier set up process that also includes Shopify making sure that your business isn’t “high risk.” While this isn’t crippling, it does mean more initial setup time and that you’ll need to do your homework on Shopify’s terms of service.

Shopify Review

Authorize.net Image

Authorize.net, a Visa solution, is a payment gateway provider that focuses on allowing merchants and businesses to accept credit card and electronic check payments securely through e-commerce websites. While it’s not a household name, Authorize.net has been a back-end payments processor for a long time and has the customer list to prove it.

However, that maturity also shows in its payment service offerings, which until recently have remained focused primarily on well-established payment technologies, namely credit card processing and ACH. However, it backs those services up with advanced fraud protection features, support for recurring billing subscriptions, as well as a simplified set of checkout options.

While those offerings are fairly mainstream, the pandemic has spurred the company to build some more sophisticated features. The company can now process payments for both physical as well as online merchants using a single processing engine. This includes a virtual terminal that can accept card payments without an e-commerce website or card reader, and digital invoicing that works by sending email invoices. These will give your customers the option to pay from a PC or mobile device.

Chargebee Image

If you’re looking to offer subscription-based services, Chargebee may be exactly what you need. This service specializes in scalable subscription billing and revenue operations. Chargebee automates recurring billing, though its solution is focused mainly on software-as-a-service (SaaS) companies. Its automation features revolve around more than 480 recurring billing scenarios, so it supports the vast majority of potential billing workflows.

It’s also something of an end-to-end solution as it manages not only your billing schedules, but also rotations and invoicing, tax management, and payment processing. This combination is intended as a flexible solution that you can tweak to bill yearly, monthly, or for any period — even days. Subscription providers will appreciate the auto-calculating prorations for upgrades and downgrades, and the platform’s customizable rule set for handling cancellations. Chargebee even eliminates rounding errors since it can accurately track product usage and reflect that data in taxes and invoice charges.

Square Payments Image

Another familiar name in e-commerce and retail POS solutions, Square offers a wide variety of payment processing products. Square Payments is one of the company’s most flexible payment offerings, combining contactless customer interaction with the ability to accept almost any kind of payment. That includes magstripe (standard swipe credit card), chip card, or NFC (phone payments). Square will also let you process remote payments and can even accept payments without a connection in Offline Mode.

That payment flexibility is certainly one factor that makes Square Payments attractive to small merchants, but the company has two more arrows in that quiver. For one, Square is highly focused on ease of setup and overall user convenience. This is an end-to-end solution with Square providing whatever preconfigured hardware, software, and point-of-sale (POS) technology your particular operation needs. Second, it’s also a very competitive solution with regards to its payment processing fees. Square Payments requires no long-term commitments or monthly fees, which means subscribers only pay once they make a sale. Uniform pricing is a flat rate of 2.6% + $0.10 per transaction for all major cards, including the contentious American Express. Square also enables quick transfers that appear in bank accounts in one to two business days. All of which makes this a strong contender if you’re a cost-conscious retailer.

And, if you’re already an established online retailer looking for a better payment processor, Square Payments works with many third-party e-commerce platforms, like BigCommerce, Wix, Weebly, Ecwid, and more.

Stripe Payments Image

Stripe Payments is a comprehensive global payments platform that’s good for small brick-and-mortar businesses as well as online retailers and other for-profit website operators. Like Square Payments, the Stripe solution can handle almost any kind of payment transaction, which covers not just standard online and offline payments, but also recurring payment scenarios. Stripe can handle the gamut of payment methods, including bank redirects, bank debits and transfers, “buy now, pay later,” cash-based vouchers, credit cards, currencies, subsidiary support, and electronic wallets.

If you want to add professional-looking hosted payment pages to your ecommerce site, Stripe Payments has a wide range of plugins for platforms like Drupal, PrestaShop, Magento, WooCommerce, and WordPress. That means you can build nicely customizable payment processing features fairly easily into all kinds of websites, not just online shops.

VizyPay Image

VizyPay is another payments processor targeting small business customers. The service covers mobile, online, or storefront payment solutions and is a good choice if you’re just starting out. A big reason is a transparent fee structure that starts as low as $25 a month. VizyPay also works to keep your revenue stream running smoothly, promising that it can transfer paid funds into your account as soon as the next business day.

Another feature that should attract small business buyers is that VizyPay is focused on customer support, promising that subscribers can contact its support resources in under a minute. The company doesn’t believe in contracts, so it doesn’t enforce long-term commitments — another attractive feature. While it’s not quite as all-encompassing as Square or Stripe, its transparent fee structure as well as its ability to handle the most common payment scenarios make VizyPay a convenient solution for not only small online merchants, but particularly e-commerce newcomers.

Business

Democratic Mayoral Candidates Talk Making the City More Business-Friendly

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A Warby Parker event (photo: Demetrius Freeman/Mayor’s Office)


This past week, advocacy group Tech:NYC and glasses company Warby Parker, among others, co-hosted a forum with seven leading Democratic candidates for mayor, who appeared one at a time to answer questions from Business Insider columnist Josh Barro about the city’s future and their agendas.

The participating candidates, in order of appearance, were entrepreneur Andrew Yang, former sanitation commissioner Kathryn Garcia, Brooklyn Borough President Eric Adams, former federal housing secretary Shaun Donovan, former Wall Street executive Ray McGuire, Comptroller Scott Stringer, and Maya Wiley, a civil rights attorney and former counsel to Mayor de Blasio. The event was co-hosted by AT&T, Bowery Farming, Etsy, Harry’s, Via, WeWork, and Zola, among others.

The questions, somewhat uniform to each candidate, focused on issues relevant to the tech and business communities, such as how to attract business to New York City in the post-COVID-19 economy, the failed Amazon ‘HQ2’ deal, housing development, and expanding broadband access.

Andrew Yang
Barro asked Yang as a businessman how he thought that businesses choose to locate in New York, and how as mayor Yang would make them more interested in the city. Citing his experience in start-ups, Yang argued that the location of companies depends on where their employees would like to be. He said that “if there’s one thing that makes the world goes around for founders, it’s talent.”

To make the city more attractive to employees, Yang honed in rectifying quality-of-life issues such as “getting schools open to garbage pick up to public safety concerns.” He reiterated his oft-cited stance that the city must restore its “value proposition” to business owners and others alike to make some of the challenges of the city, like cost and commutes, worth it.

Barro asked why “garbage is piled high on the sidewalks” and why the city has not moved to containerized pick-up. Yang called out the cuts to the Department of Sanitation budget, saying that “if you’ve noticed more trash on the street, that’s why,” and saying that is something he would restore funding to.

Barro moved on to ‘HQ2,’ which was slated for Queens before activists and elected officials who opposed the Amazon deal pushed the company to back out, and the role of subsidies in attracting major technology companies to New York City. Saying that “Manhattan has a natural draw,” Yang acknowledged the role of subsidies in attracting companies to the other boroughs.

Yang said that he supported ‘HQ2’ for Queens, and falsely said, “I’m one of the only mayoral candidates who’s said on the record that losing Amazon was a mistake for the city.” Barro pressed Yang on whether the “billions in subsidies” that Amazon would have received would have been worth it. Yang said it wasn’t great policy. “You can’t just let them walk away,” Yang said, citing the many thousands of jobs the campus was slated to create and support of the service industry it would have provided.

Barro then asked if changes to corporate structures that allow for remote work, accelerated by the demands of the COVID-19 pandemic, affected the city’s ability to attract tech companies. “New York City is fundamentally a place-based economy,” Yang said, and “the New York City advantage will still be there.” Barro pressed Yang further on the difference of attracting workers versus attracting firms, asking Yang how his strategy to attract companies would change. Yang admitted that the city will have to “compete and make its case” in a way it did not have to in the past, adding that he is exploring “incentives” for workers to commute to the city five times a week, mentioning gift cards to New York City bars and restaurants as a possibility, and making investments to increase tourism.

Barro asked Yang about reducing the sky-high costs of the city’s capital projects. Yang said he would have the city “be more disciplined” about having contractors focus on the quality of their work rather than sub-contracting. He also mentioned he would streamline bureaucracy, saying that it was not user-friendly for small businesses.

Asked how many housing units the city should build over the next ten years, Yang did not present a specific figure, saying only that it would be in “the tens of thousands” for his first term and that he would want to increase the rate of housing development in the city. Seemingly underprepared to discuss housing development goals, Yang pivoted to his pledge to reduce street homelessness “by 50%” over his first term, and said he would want to convert some vacant hotels into affordable and supportive housing.

Barro concluded by asking Yang if he had connected with any of the other mayoral candidates, to which Yang responded that he was “a huge Kathryn Garcia fan” and that she was someone he “admired a great deal.”

Kathryn Garcia
Asked why she is the best candidate for mayor, Garcia told Barro that “understanding how the city works is absolutely critical, because then you can actually fix things” and “know where the pain points are.” She said her managerial experience in various roles in city government made her the strongest potential next leader for New York City.

Barro asked Garcia about the city’s garbage situation, asking if it was possible to “get it off the sidewalks and into closed containers,” to which Garcia said it was fully possible, and that part of that effort would require the city “rethink the public realm” about how street space is used. She mentioned that as sanitation commissioner she had launched a pilot program for commercial corridors that is being implemented.

Asked how she thought public spaces were being underutilized, Garcia advocated that “you need people walking the streets of New York, spending money” and that public space management efforts should look at “Open Restaurants, Open Culture, but also thinking about greening the city,” with references to two recent pandemic-era public space programs launched by the city.

On attracting companies to the city, Garcia said she would focus on a “liveable city,” as companies “locate where they have really strong labor forces.”

“We have to do way better” building housing, Garcia said, adding that her efforts would target “unlocking the private sector by getting rid of the bureaucracy” and building between 20,000 and 30,000 units a year. Citing that “time is money in construction” and that “we don’t actually do good planning,” Garcia said she would increase community input and reduce bureaucracy. Barro challenged her on this point, asking how she would resolve situations where increased considerations would conflict with expeditiousness, citing her support while working under de Blasio for special construction permits for hotels. Garcia sidestepped the first part of the question, only defending her support of special permits for hotels.

On expanding broadband access, Garcia said she would target lowering costs, facilitating rule changes to make the expansion of broadband easier in communities, and having the city connect residents to broadband themselves if companies did not create broadband access where the city would like.

Eric Adams
Adams said that he is the best candidate for mayor because of his life experiences from growing up in poverty, experiencing police brutality, becoming a police officer himself, and his diabetes diagnosis that he went on to beat through a healthy lifestyle. As “someone who has gone through a lot,” Adams said he was in the best position to help other people “going through a lot.”

On how companies should be “respectful” in the city and be good neighbors, something Barro brought up as Adams has discussed it in the past, Adams said he would challenge corporations to think on the question “how do I involve myself in the communities put in place long before me?” such as working with the Department of Education to teach children life skills. On how he would actually accomplish these partnerships, Adams pointed towards working with specific organizations and not “demonizing companies” and creating “this synergy that we are in this together.”

Examining his stated plan to name an “efficiency czar” to make city government work better, Barro asked how Adams’ approach to reducing waste differed from past tactics under Bloomberg and de Blasio. Adams argued that “the city is dysfunctional” because “agencies are not aligned” and pointed to his record in the NYPD using data and technology as part of the department’s modern evolution. When pressed by Barro on how agencies would operate differently, Adams cited his mother saying “What gets measured, gets done. If you don’t inspect what you expect, it’s all suspect,” and said he would want real-time data for examining basic city services.

Barro gave Adams the same question he gave to Yang on whether the city should push for tech companies to locate in boroughs other than Manhattan and whether Adams would support subsidies to make that happen. Adams denied that the city needed a subsidy program, and turned to discussing quality-of-life issues. To “build the proper environment” for companies to locate all over the city, he would focus on providing services such as access to transportation, public safety, and high-speed internet, he said.

Barro brought up the defeated Industry City rezoning in Brooklyn, an expansion and development proposal promising thousands of jobs and more economic activity along the Brooklyn waterfront that was ultimately defeated by local activists and City Council Member Carlos Menchaca. “It’s really unfortunate that we could not seal the deal in Industry City,” Adams said, adding that on development projects in general he would want to focus on being inclusive but also on “how can we get to a yes.” On whether or not local Council members have too much power to kill projects in their districts, Adams argued that for projects that affect the entire city, one member of the City Council should not have the power to shut them down, an informal practice known as “member deference” where the full Council defers to the local member whose district the proposal is slated for.

On housing, Adams told Barro that asking how many units of housing to add was “the wrong question” and that the city should audit its current housing to see where there are vacancies or lack of use and go from there. Barro pushed back, saying that even with auditing vacant housing more housing must be developed because of the city’s growing population, on which Adams deflected and instead pressed his desire to identify unused housing.

Shaun Donovan
Barro opened his conversation with Donovan, the former head of housing in the city and nationally under Mayor Bloomberg and President Obama, on housing. Donovan said the city should add 50,000 units per year, a very large goal, and touted his “15-minute neighborhoods” plan to ensure every New Yorkers lives in a great neighborhood with access to everything they need.

On rezonings, Donovan said he was open to upzonings for more housing, such as what the de Blasio administration is currently attempting in SoHo. He added that there should be a “citywide land use budget” to “make sure every community is doing its fair share,” through looking at ways to add density and using citywide inclusionary zoning.

After Barro asked what he would do differently to add housing from his time under Bloomberg, Donovan said the scope of the city’s housing problem is wide enough that “changing the trajectory” for the city takes years. He also said he was proud of the Bloomberg legacy on upzoning wealthier communities.

On lowering the cost of construction, Donovan discussed “building differently” such as using new technologies and having an administration “that brings innovation to every phase of what government does.”

On attracting increasingly mobile workers and firms to New York City, Donovan called himself “an urban optimist” and that the question was about whether or not specifically New York City could manage the challenge. New York City can become the “tech center” of the world, he said, and he would make it happen through his specific plans and by focusing on quality-of-life issues.

Ray McGuire
McGuire argued that he was the best candidate for mayor because of his private sector experience, where he was one of the top executives at Citi and on Wall Street more generally, saying that “this is not the time where someone gets to the mayoral spot to learn how to manage or lead.”

On attracting businesses, McGuire said that the city should “incentivize businesses to do more business here, not less” and that he would work on uniting business interests with the rest of the city, rather than pursuing divisive measures such as increasing taxes.

To move “job centers out to the outer boroughs,” McGuire supported using subsidies, which he referred to as incentives. McGuire said the collapse of the Amazon ‘HQ2’ deal was a mistake and that the project would have been a big net positive for the city, even with the subsidies.

On expanding broadband access, McGuire said it’s essential for education, and pointed to his economic comeback plan, which would include efforts to create universal broadband access.

To improve the efficiency of the city’s capital projects and “to bring costs under control,” McGuire said he would “bring all constituents to the table.” He said that he “wasn’t in anyone’s pocket” and that his “sole focus” is on what is best for the city, that he’s not “focused on sub-agendas.” He referenced de Blasio’s tagline of the “Tale of Two Cities,” saying that now New York City was a “fractured city.”

Calling his answer “nonspecific,” Barro pushed McGuire to elaborate on what made his leadership skills unique. McGuire said that, having led a global business, he was the only candidate with the skills to unite the diverse constituencies of New York City and focus on “shared prosperity.”

On housing, McGuire said he would like to increase the city’s housing units by 10%, or 350,000 units. Barro asked McGuire for a timeline on such development, which McGuire side-stepped, pointing to lowering construction costs and the economic benefits new construction would bring.

Scott Stringer
Stringer said he should be the next mayor in part because he is a “real seasoned government leader, who has vision and experience.”

Barro asked Stringer how he would seek to regain jobs lost in the COVID-19 pandemic, confronted with “an economy that may be permanently different in certain ways,” citing business travel as something that may permanently decrease.

Stringer replied that he would focus on small businesses, including by directing $1 billion from the city’s federal stimulus money to them. He would provide tax incentives for new businesses to locate in the city in “vacant corridors” and would make sure small businesses are not “fined and fee-ed into oblivion.” He said small business owners would not need to hire an expediter to get projects approved in the city and he would create a tech platform for small businesses to use to efficiently navigate city processes.

Asked what he would do differently from Bloomberg and de Blasio on the issues of inefficiency in small business processes, Stringer lambasted de Blasio by saying “what he didn’t do was govern.” Saying “you gotta manage this town,” Stringer said that he would focus on actually accomplishing goals that the city sets for itself.

On attracting tech companies to boroughs other than Manhattan and the role of subsidies in those conversations, Stringer said “it’s exciting that we’re spreading our economy out,” that “if we build it, they will come,” that he would focus on quality-of-life issues such as transportation, and that attracting businesses relies on the “value proposition” of what the city can offer businesses.

On how many housing units he would seek to create as mayor, Stringer said “as many as possible,” but he said key to his vision is creating enough “low-income housing” to actually meet the need in the city. Looking at the legacies of Bloomberg and de Blasio, he said, “We’ve had mayors talking about these big numbers, but they have not helped people get housing.” His efforts would focus on housing that targets those close to homelessness and would focus on true affordability. He would create 10,000 units of low-income housing and “catalogue” the vacant parcels the city owns for potential developments.

Maya Wiley
Saying that the COVID-19 pandemic “pulled the curtain back” on the issues the city faced, Wiley said that the challenge for the next mayor would be to “create a more unified city.” Doing this requires “very different leadership” to pursue “transformative policy,” Wiley said, adding, “I’m not a politician, and I think that’s the point.”

On expanding broadband, Wiley pointed to her work on universal broadband when working for de Blasio at City Hall by soliciting input from outside groups such as Girls Who Code, and by unifying the efforts of different agencies to work on the project. When Barro pushed Wiley for concrete steps for accomplishing universal broadband, she said she would focus government efforts on the “last mile problem in highly, highly, underserved areas” by “asset-mapping” current city resources that could be used to provide universal broadband. She would also pursue public-private partnerships, and look at technological innovations, she said.

On small businesses, Barro asked about why Wiley’s platform would have the city increase the number of restaurant health inspections, but to have those inspections announced in advance. Wiley said sometimes the city’s efforts to protect health can backfire by “jeopardizing the business rather than serving the public,” and that her plan would maintain restaurants’ compliance with health code violations while

Adding to her response, Wiley said she would streamline small businesses’ interactions with the city and grow their relationship with the city. She would want the city to be more proactive in their assistance to small businesses, so that they work together to solve problems rather than having the city shutting down actions after the fact. As an example, she mentioned having the city release blueprints for COVID-19-safe outdoor dining vestibules, rather than punishing restaurants for non-compliant vestibules after those businesses spent thousands of dollars “that they don’t have” on them. This would be “business-friendly, without sacrificing the issues we have to protect for the public,” she said.

Barro asked Wiley if there were other “big pilots” such as Open Streets she would want to pursue as mayor. “City government is a city unto itself,” she replied, and said that it is important to “recognize where government needs to partner with itself” better. To that end, she mentioned her plan to create an Office of Public Space Management, which would unite different agencies to create a centralized approach.

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Here’s a list of pandemic assistance programs for small businesses

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Allie Salas, owner of Reno Aspire Fitness, stands in her gym on Feb. 18, 2021.  Women and minority business owners continue to struggle amid the pandemic.
Allie Salas, owner of Reno Aspire Fitness, stands in her gym on Feb. 18, 2021. Women and minority business owners continue to struggle amid the pandemic.

This story is free because it is part of the Reno Gazette Journal’s essential coverage of the COVID-19 pandemic. This kind of journalism takes time and resources. Please consider subscribing.

Despite the improved numbers for new cases and deaths compared to the peak of the pandemic, COVID-19 continues to have an outsized impact on small businesses.

The passage and signing of the American Rescue Plan Act in March kicked off another round of funding for COVID relief, which includes several assistance programs for small businesses. While this is good news for struggling business owners, many either don’t apply or underestimate the amounts that they qualify for, said Kayla Banda, a business development advisor with the Nevada Small Business Development Center.

Some business owners and independent contractors don’t even know that relief options exist, especially smaller assistance programs run by local and state entities.

“The big thing is that a lot of businesses don’t know that they can qualify for assistance,” Banda said.

“I’ve talked to clients who had no idea that they could actually qualify as a new business, for example. I’ve also had clients who left money on the table when they could’ve gotten more.”

This makes it especially important for small business owners to not just keep tabs on the various assistance programs but also educate themselves about the benefits they qualify for. Business owners should also move quickly as funding will eventually run out, particularly given the high demand for these programs.

For subscribers:Shell company transparency law takes aim at a key Nevada industry. Will it have an impact?

Here’s a list of several pandemic assistance programs for businesses, including those that provide financial assistance and forgivable loans for entrepreneurs impacted by COVID-19:

  • Paycheck Protection Program (PPP)
  • Economic Injury Disaster Loan (EIDL)
  • Shuttered Venue Operators Grant (SVOG)
  • Restaurant Revitalization Fund (RRF)
  • SBA Debt Relief
  • Coronavirus Food Assistance Program 2
  • COBRA Premium Assistance
  • Pandemic assistance from state and local governments

Here is a quick rundown of the various pandemic assistance programs available for businesses.

An image showing several small mom and pop shops lining Victorian Plaza in downtown Sparks on Friday, Oct. 24. A group of local business owners, known as 39 North Downtown, hope to revitalize Sparks and attract new businesses to the area.

Paycheck Protection Program

The PPP, which is overseen by the Small Business Administration, is arguably the most widely known pandemic relief program for businesses. It’s designed to incentivize small businesses to keep workers on the job by providing funding for payroll.

The biggest draw of this program is that while it is technically a loan, borrowers can have the amount written off if they apply for forgiveness within 10 months of the last covered period of their agreement. It’s basically free assistance for those who qualify for it.

Also, while the PPP is designed as a payroll assistance program, it can also apply to small businesses that do not have any employees.

“Some people like sole proprietors and independent contractors think that, ‘Oh, I don’t have payroll because I don’t have any employees so I can’t qualify,’ which is totally not true,” Banda said. “If you receive a Schedule C (profit or loss form from the IRS) … you can actually use that to calculate your loan amount.”

For more details about the program, including help for finding a qualified lender, visit the SBA’s official PPP website. Otherwise, call your local SBA District office for more details. In Northern Nevada, the number is 775-885-7647.

Economic Injury Disaster Loan

Also known as EIDL, this is another program overseen by the SBA and provides economic relief for small businesses as well as nonprofits that have suffered from a temporary loss of revenue. The assistance can be used to pay for financial obligations or operating expenses that a business would have been able to cover on its own had the pandemic not occurred.

Like the PPP, this program has been around for a while but has one key difference.

“It’s not forgivable,” Banda said. “But it’s still a pretty good option for businesses.”

Borrowers can also apply for both the PPP and EIDL, but funds from both are not allowed to be used for the same purpose. Applicants also must be physically located in the United States and have fewer than 500 employees.

The maximum loan amount is $150,000, with loans above $25,000 requiring collateral. The interest rate is 3.75% for businesses and 2.75% for nonprofits, with payment terms up to 30 years.

For more information or to apply for a loan, visit the SBA’s official EIDL website.

Shuttered Venue Operators Grant

Known as SVOG for short, this program was amended by the American Rescue Plan Act and provides more than $16 billion in grants to venues that have been closed due to COVID-19. Of that number $2 billion is set aside for smaller operations with 50 employees or less.

Applicants that qualify for the program will receive grants equal to 45% of their gross revenue. The maximum grant amount for one applicant is $10 million.

Entities that are eligible for the Shuttered Venue Operators Grant include:

  • Live venue operators or promoters
  • Theatrical producers
  • Live performing arts organization operators
  • Relevant museum operators, zoos and aquariums who meet specific criteria
  • Motion picture theater operators
  • Talent representatives

Note that booking agencies can qualify even if they don’t operate a venue per se.

“They can qualify if 70% or more of their annual revenue comes from booking the talent for the venues,” Banda said.

Keep in mind, however, that while it’s possible to receive assistance via the SVOG grant after getting PPP assistance, the reverse is not true, Banda warned.

“If you apply for the SVOG, you can no longer apply for the PPP so people need to get their PPP first before applying for the SVOG,” Banda said.

For more information or to apply, visit the SBA’s official SVOG site.

Restaurant Revitalization Fund

Server Delaney Fine, left, brings some drinks to customers at the Squeeze In restaurant in Reno on May 13, 2020.

This $26.5 billion fund was established by the American Rescue Plan Act for food and drink establishments. The program, which will be awarded by the SBA, will set aside $5 billion of its funds for smaller businesses with gross revenues of less than $500,000. There will be a cap of $10 million for each business, including $5 million for each physical location of a business operation.

According to the American Rescue Plan Act, businesses that can apply for the Restaurant Revitalization Fund include:

  • Restaurants
  • Food trucks
  • Food stands
  • Food carts
  • Caterers
  • Inns
  • Saloons
  • Tavern
  • Bars
  • Lounges
  • Brewpubs
  • Taprooms
  • Tasting rooms

Publicly-traded companies are ineligible, which is good news for smaller operations that were squeezed out by large chains during the first round of PPP funding.

Funds will be allocated within phases, with businesses that lost a larger percentage of revenue being prioritized first. The RRF will also give higher priority to small businesses run by women, veterans and socially and economically disadvantaged proprietors.

“That’s good because my initial concern was that big restaurants will go in and just eat up those funds,” Banda said. “Eligibility for the program is so open and broad.”

According to the National Restaurant Association, eligible businesses “may receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts.”

If you already received PPP funding, that amount will be deducted from your eligibility for the RRF.

As of early April, an official date has not been announced for program applications but it should be included in the SBA’s main COVID relief operations site once it is available.

SBA Debt Relief

The SBA Debt Relief Program provides financial assistance for borrowers of three types of SBA loans:

As part of the program, the SBA will pay six months of principal, interest, and any associated fees owed by borrowers for such loans that are in “regular servicing status.” The assistance will be automatically provided without needing an application and will apply to loans that were approved up to September 27, 2020.

Coronavirus Food Assistance Program 2

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This program is administered by the USDA and was re-launched on April 5 after signups ended on Dec. 11. The program provides financial assistance to farmers, ranchers and other producers to absorb increased costs from market disruptions caused by the pandemic. Assistance is based on the type of commodities grown or raised by farmers and ranchers.

Commodities that are eligible for Coronavirus Food Assistance Program 2 assistance include:

  • Specialty crops
  • Livestock
  • Dairy
  • Row crops
  • Aquaculture
  • Floriculture
  • Nursery crops

The launch of CFAP 2 coincides with an increase in payment rates for commodities such as cattle under the original CFAP program.

“We did what we call additional top-up payments to folks who were already signed up and each commodity had a payment rate,” said Gus Wegren, acting state executive director for the USDA Farm Service Agency in Nevada. The first CFAP round accounted for nearly $26.7 million in payments for Nevada producers alone and more than $1.2 billion in California.

The USDA also expects to make $4.5 billion in payments to 560,000 producers as part of new CFAP 2 funding that pays $20 in assistance per acre. Total funds for the second round of CFAP 2 funding amounts to about $6 billion, Wegren said. There is a payment limit of $250,000 for each applicant but exceptions also exist for legal entities that have multiple members that provide active labor or personnel management. Examples include cattle operations that are set up as limited liability companies.

“If they can prove that each member provided at least 400 hours of active personal labor or management, then they can get $500,000 for two members or $750,000 for three members,” Wegren said.

Applications with a focus on CFAP 2 will also be expedited by the USDA for financial assistance under its cooperative programs. Award amounts for the cooperative agreements will range from $20,000 to $99,999 over a time period between six months and one year. Applicants will be notified of their acceptance or denial by June 20 and awards will be in place by Sept. 1.

Sign-ups for CFAP 2 will be open for at least 60 days from April 5. The USDA is also looking into launching a new program such as a potential CFAP 3 to provide targeted assistance for certain types of producers like organic farmers, for example, Wegren said.

For more information or to apply for CFAP 2, vist the USDA’s CFAP 2 website.

The USDA also offers various loan assistance programs for farmers and ranchers. More details on these programs are available at the USDA’s webpage for funding opportunities.

COBRA Premium Assistance

This program provides insurance assistance to employees who lost their coverage and the subsidy will come in the form of a payroll tax credit for employers. As part of the American Rescue Plan Act, the Department of Labor announced on April 7 that the federal government will provide eligible employees who lost their healthcare coverage a 100% subsidy on their COBRA insurance premiums between April 1 and Sept. 30.

For more details, visit the Department of Labor’s COBRA Premium Subsidy web page.

Pandemic assistance from state and local governments

Several state and local governments provided pandemic assistance during the initial round of federal funding and the passage of the American Rescue Plan Act is no different. In Northern Nevada, local governments such as Reno, Sparks and Washoe County were in the middle of assessing new assistance plans as of early April.

Here is the status of the various state and local pandemic assistance programs currently in Reno-Sparks. This article will be updated as new information is released.

Nevada Governor’s Office of Economic Development: The state economic development agency oversaw Nevada’s Pandemic Emergency Technical Support program, which paid out more than $50 million to applicants during its first round of funding. Nevada received about 13,500 applications for the program, which includes small businesses, non-profits, arts and culture organizations, and local Chambers of Commerce. Funds from the program can be used to cover capital such as rent, inventory, payroll and utilities, as well as protective equipment and retrofits for improving safety.

While applications have since closed, Gov. Steve Sisolak has requested an additional $50 million in funding from the Nevada Legislature. If approved, the state says it will continue to fund small businesses that submitted applications to the program, including those that were denied due to the lack of available funding.

For more details, visit GOED’s main PETS webpage.

City of Reno: The city of Reno is currently looking at its options to provide pandemic assistance from the funding provided by the American Rescue Plan Act.

“We do not yet have guidance on how these funds can be spent, so we do not have any programs yet for spending the ARPA,” said Matt Brown, a spokesman for the city of Reno.

“We are still gathering information. Also, we don’t have the funds yet and are not quite sure of when they will arrive, as of right now.  This is changing daily and, hopefully, we will get the guidance soon so we can prepare a plan for Council approval.”

City of Sparks: The city of Sparks is also assessing its options for providing pandemic assistance to small businesses from the latest round of federal funding.

“Right now we are still unsure as to how much money we will be receiving through the American Rescue Plan,” said spokeswoman Julie Duewel.

“It is looking like we should receive the first distribution right around May 10. We do know that we will be putting a substantial amount of these funds back into the community but no concrete decisions or direction has been made yet.”

Washoe County: Washoe County, which recently approved an extension of its Emergency Rental Assistance Program after receiving $6.5 million in funds from the Treasury Department, is also looking at its options to provide pandemic assistance from ARPA funds.

“We don’t actually know how much we’ll receive or what the parameters are around how it can be spent yet,” said spokeswoman Bethany Drysdale.

For small businesses who need advice regarding their options for pandemic assistance, including how to put together an application for the various options available, the Nevada Small Business Development Center provides free advice and counseling. For more details, visit the Nevada SBDC website or call (800) 240-7094.

Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.

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Schools closed, businesses damaged as unrest breaks out in Brooklyn Center following police shooting

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Schools closed, businesses damaged as unrest breaks out in Brooklyn Center following police shooting

Residents, curious onlookers and business owners in Brooklyn Center emerged early Monday to begin cleaning up and to see for themselves the damage left behind after violence and looting broke out overnight following the fatal shooting of a motorist by police Sunday afternoon.

Officers in riot gear stood sentinel at the city’s police station that was tagged with anti-police graffiti and where squad cars were damaged. The National Guard blocked the entrance to the Shingle Creek Crossing shopping plaza where several retailers had windows busted out and merchandise strewn on the floor. Flip-flops and bottles of fruity drinks littered the Walmart parking lot where a man who gave his name as Thomas was part of a small army of store employees picking up trash and debris.

“All of our large screen TV’s were taken,” he said.

Alarms blared at a Verizon store across the way where the front window was broken and a TV was ripped off the wall. Looters had ransacked the Icon Beauty Salon and left boxes of fake eyelashes behind in the parking lot. At Aspen Dental, only the front door sustained damage, but the clinic canceled all Monday appointments.

“I expected it to be way worse,” said Sara Trout, an employee who was on the scene just before 7 a.m. even though she had received a text message telling her not to come to work.

A quiet yet tense feeling enveloped the Hennepin County suburb as law enforcement lifted an overnight curfew at 6 a.m. With fears that unrest could erupt again as police have scheduled an 11 a.m. media briefing, Brooklyn Center Community Schools told students to stay home and do distance learning.

“We know our community experienced trauma and we need the time and space to process,” said Superintendent Carly Baker.

Adam New, a 1999 Brooklyn Center High School graduate who does not live in the city anymore, took a city bus to his hometown Monday morning to check out the aftermath of Sunday night’s mayhem.

“They want to burn the place down,” New said as he watched patrols guard the police station. “I’m sick of it. This has to spark change.”

Scores of motorists with phones in hand took videos as they rolled by the station. Others, like Eric Cullen, of Bloomington, stopped by police headquarters to assess the situation and get a firsthand view rather than relying on media accounts of what happened.

“I’m a see-it-to-believe-it kind of guy,” he said.

Events unfolded Sunday afternoon when a police officer allegedly shot Daunte Wright, 20, during a traffic stop about 2 p.m. in the area of 63rd Avenue and Orchard Avenue N. Wright drove a few blocks before he crashed into another vehicle and died. Wright had a warrant for his arrest at the time.

The Bureau of Criminal Apprehension was on the scene and will conduct an independent investigation.

Protesters had assembled near the scene by Sunday afternoon and had been relatively peaceful until nightfall. That is when they marched to police headquarter near N. 66th Avenue and N. Humboldt Avenue and were locked in a standoff with police in riot gear. Police used tear gas, flash bangs and rubber bullets to disperse the crowd that had chanted Wright’s name and climbed atop the police headquarters sign.

On Monday, crime scene tape remained in yards near where the shooting happened. At the shopping complex, broken glass covered sidewalks and business owners surveyed the damage.

“Oh, they hit the Dominos and the Wing Stop,” Trout lamented. The manager of the pizza joint “is the nicest guy.”

The dental clinic where she works was largely spared. Other than broken glass, “nothing was stolen,” Trout said. “I’m not sad that it happened.”

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